CHINA Law and Practice Contributed by: Yan Gao, Yilin Wang and Zhuohui Li, Zhong Lun Law Firm
al, or the transferee must obtain a fresh approval. For filing-based projects, prior notice must be given to the competent development and reform commission, or the transferee must complete a fresh filing. During the operational phase, under the Electric Pow- er Business Licence Management Regulations, the transferor must apply to amend its licence within the prescribed period following completion of the transfer, and the transferee must apply for a new licence. Where the transferor is a state-owned enterprise, the transfer must also comply with the Measures for the Supervision and Administration of State-owned Asset Transactions of Enterprises (State-owned Assets Supervision and Administration Commission or SASAC, and Ministry of Finance, effective 24 June 2016). Prior to the transfer, the transferor must com- mission a qualified asset valuation institution to assess the assets, with the result subject to approval or filing by the competent authority. The transfer price must be based on the confirmed or filed valuation. Where the asset value exceeds the prescribed threshold, the transfer must be conducted through public competi- tive means at a property rights trading institution. 1.5 Central Planning Authorities The NDRC is a ministerial-level department of the State Council responsible for formulating and imple- menting national economic and social development strategies, plans and policies. In the power sector, the NDRC plays a central role in policy formulation and economic regulation: it issues key electricity market rules and reform policy documents, sets and adjusts government-regulated electricity tariffs, supervises price compliance, and approves major power infra- structure investment projects above prescribed thresholds. The NEA, which is managed by the NDRC, is sepa- rately responsible for sector-specific energy adminis- tration, including project approval and filing, licensing, and day-to-day industry supervision. Many of the prin- cipal regulatory instruments governing China’s power sector are jointly issued by the NDRC and the NEA. Under the Electricity Law, power grid operation is sub- ject to unified scheduling and hierarchical manage-
ment. Under the Regulations on the Administration of Power Grid Scheduling (State Council, effective 1 November 1993, most recently amended in 2011), the NEA acts as the national competent authority for power grid scheduling, while provincial energy admin- istrations are responsible for scheduling within their respective administrative regions. Under the Imple- menting Measures for the Regulations on the Admin- istration of Power Grid Scheduling (Ministry of Electric Power, effective 11 October 1994), grid scheduling institutions are responsible for duties including the formulation and implementation of scheduling plans, directing grid frequency and voltage regulation, han- dling grid accidents, managing equipment mainte- nance schedules, and organising professional training for scheduling personnel. Power plants are required to operate in accordance with scheduling plans and voltage ranges specified by scheduling institutions, and to adjust power output and voltage as instructed. The State Grid Corporation of China and China Southern Power Grid Company Limited are required to formulate power generation and supply plans and submit them to the competent electricity administrative department of the State Council for filing. 1.6 Recent Changes in Law or Regulation The Energy Law represents the most significant recent legislative development. It institutionalises the legal status of the new power system, brings new ener- gy, storage and demand-side response within the statutory regulatory framework, strengthens non- discriminatory grid access requirements, establishes a framework for transmission and distribution pricing and cost supervision, and supports cross-regional electricity trading to promote the development of a unified national electricity market. 1.7 Announcements Regarding New Policies Several important regulatory instruments have recent- ly come into effect to accelerate the development of a unified national electricity market. The Basic Rules for Power Market Operation establish unified super- visory requirements for spot, medium and long-term, and ancillary services markets. The Basic Rules for Medium and Long-Term Power Market Transactions replace the 2020 version, strengthening the interface
82 CHAMBERS.COM
Powered by FlippingBook